Payment Protection Insurance

Homeowners who buy their Mortgage Payment Protection Insurance (MPPI) from high street lenders could be paying £10,000 more in premiums than they need to, according to British Insurance.

Posing as a 30 year-old couple looking to protect mortgage repayments of £700 a month over 25 years, representatives recently contacted ten of the UK’s top lenders and found that on average, consumers are shelling out £7,119 more than necessary. The most expensive lender, Nationwide, quoted £7.89 per £100 of cover, which over the lifetime of the loan equates to premiums of £16,569 – nearly three times more expensive than British Insurance at £2.75 per £100 or £5,775 over 25 years.

I urge consumers to check their premiums. We all shop around for our home and motor cover, so why not mortgage repayments? I’m saddened by these findings. Not only are my premiums competitive, but I offer tax free benefits from day one, options for accident illness or unemployment only cover and a monthly contract that can be cancelled at any time.